Pros and cons of credit cards

So what in fact is a credit card – a “goody-goody wand” or another debt swamp? In fact, there is no simple answer to this question. It all depends on how you’ll use the card. We can only highlight the obvious advantages and disadvantages of this product.


  1. Grace period. In fact, this is what any borrower dreams of – to get and return the same amount. In addition, during the grace period you can repay not the full amount, but only a part of it, or only the minimum payment. The main thing is to follow the deadlines.
  2. Multiple use of credit limit. You don’t need to apply for a loan several times: as soon as you repay your current debt you can use the initial amount again.
  3. You can use the money from your credit card at your own discretion and not report to the bank what you spent it on.
  4. Cashback, points, and miles – these additional options will allow you to save a little money. Especially if you have a co-branded card from a store or brand you often shop at. Miles can be exchanged for air and train tickets; a “plastic” with such an option will suit avid travelers.

As for the disadvantages, there are about as many:

  1. Interest rates are higher than on conventional loans – the difference is often 5-15 percentage points. Therefore, it is worth carefully watching the dates of the payment period.
  2. Fees. If most banks issue a card for free, the service will cost a penny.
  3. Expensive cash withdrawal. We do not advise you to withdraw cash from a credit card – the fee for such an operation will be quite high.

All this is aggravated by the psychological factor. Using the bank’s money is very convenient, especially when there is an opportunity to make a minimum payment from the debt and then use the credit again for free. It’s very easy to go beyond your means this way. The total debt will grow and it will be difficult to repay it. The only advice here is to keep yourself in check and watch your limits.


Any credit card is a big responsibility. Therefore, before you apply, carefully read the terms and conditions and assess your financial capabilities. Explore the available ones in your city.